Individual Savings Accounts (ISAs)

The adult ISA allowance has increased to £20,000 and you can save using a combination of ISAs. They are a tax-effcient way to save for both you and your family’s future so act now to make the most of your
new ISA allowance.

Professionally managed by

Your savings are balanced between stocks and shares and fixed interest holdings by the experienced fund management team at Schroders.

What is an ISA?

An Individual Savings Account (ISA) is a tax-efficient shelter for your savings and investments. It is completely free of Income and Capital Gains Tax and no tax is payable on money withdrawn. You are allowed to invest in several types of ISAs, including Cash ISAs, Stocks and Shares ISA, Innovative ISAs and the newly launched Lifetime ISA as long as the combined amount does not exceed your annual ISA allowance of £20,000, of which no more than £4,000 may be invested into a Lifetime ISA.

Stocks and Shares ISAs

Currently many cash based ISAs are offering low interest rates, which may be suitable if you are looking to save over a shorter term or do not want to risk getting back less savings that you pay in. However if you are looking to save for more than five years then a stocks and shares based ISA may be suitable for you. According to independent research (Barclays Equity Gilt Study 2017) in every 18 year period over the past 99 years, the probability of equities outperforming cash was 99%. As with all stocks and shares investments the value may rise and fall and you could get back less than you have paid in.

Why choose an ISA with Forester Life?

The Forester Life ISA offers a flexible way to invest in stocks and shares whatever your budget. Designed for low-cost stakeholder savings, you can invest from as little as £20 up to £20,000 in the current tax year.

Our ISAs are held in a fund that is professionally managed for you by Schroders making it easy to invest, as they will be managing and handling the investment on your behalf. The fund provides a diversified spread of global bonds and equities helping to reduce volatility and Schroders will make investment decisions via accessing a range of markets around the world through an actively managed process, taking advantage of opportunities as they arise. It offers a simple and straightforward solution for those wishing to invest in their future. So, whether you want to transfer your existing ISA or set up a new one, we could be the choice for you.

Important documents

Flexible – Save as little as £20 a month, make single contributions or both up to £20,000 this financial year.

The fund is professionally managed by Schroders – –Your savings are balanced between stocks and shares and fixed interest holdings by the experienced fund management team at Schroders.

Clear, low-capped charges – The only charge is an annual management charge of 1.5%, and then 1% after 10 years. Unlike some other providers, we do not charge entry, exit or transfer fees.

Keep up with inflation – We can automatically increase the amount of your regular savings each year to help your contributions keep pace with inflation.

Prefer to speak to a Financial Adviser?

We provide a home-based personal financial planning service to help meet you and your family's current and future financial needs. All our Advisers are fully trained to discuss the products we offer and can visit you at your convenience. With one of our Forester Life Advisers you can be assured of personal attention and a quality service at all times. Our Advisers are remunerated from product charges and will not charge you directly for any visit.

Introducing the Lifetime ISA

If you are under 40, and considering buying your first home or looking to save for the long term and into later life, then this new type of ISA may be suitable for you.

Your £20,000 tax free savings ISA allowance can be placed in any combination of permitted ISAs including up to £4,000 into the new Lifetime ISA.

Frequently asked questions

Whether saving for yourself or for your family, a lump sum in the future could help fund your child’s university education or maybe even pay for a round-the-world trip for you. Take a look at the estimated fund values in the tables below to get an idea of what could be available for your future.

Monthly
amount

Fund value after

10 years

15 years

20 years

£50

£7,940

£14,100

£22,100

£100

£15,800

£28,200

£44,300

£250

£31,700

£56,400

£88,600

£625

£99,300

£176,000

£276,000

£1,500

£238,000

£423,000

£664,000

Single
amount

Fund value after

10 years

15 years

20 years

£1000

£1,400

£1,690

£2,060

£3,000

£4,200

£5,090

£6,180

£5000

£7,000

£8,490

£10,300

£15,240

£21,300

£25,900

£31,400

£20,000

£28,000

£33,900

£41,200

The Forester Life ISA is a medium to long-term stakeholder investment scheme and as such meets the standard for ‘capped charges’. There is an annual charge of 1.5% of the value of the funds you accumulate which drops to 1% after 10 years. For example, if your fund is valued at £250 throughout the year, we would charge £3.75 that year. If your fund is valued at £500 throughout the year, we would charge £7.50 that year. After 10 years these deductions would reduce to £2.50 and £5.00 respectively.

Each year we will send a statement showing the value of the Plan.

Important notes

For the purpose of projections, monthly amounts assume an automatic increase of 2.5% per year, except for £1,270, which is 2.0% per year.

These figures are only illustrative and not guaranteed. You could get back more or less than shown and you may get back less than you initially invested.

Your return depends on how your investment grows and on the tax treatment of the investment.

Investments can go down as well as up.

Inflation would reduce what you could buy in the future.

These illustrated figures should be studied in conjunction with the Key Features and Terms & Conditions of the Forester Life ISA.

Information is based on our understanding of current legislation and HM Revenue and Customs practice, and may be subject to change.

Under current legislation, you are eligible for a Forester Life ISA if you are aged 18 or over and a UK resident for tax purposes. The ISA allowance applies to every individual, so your partner can also take advantage by starting their own tax-efficient savings. You must remain a UK resident to continue your contributions to an ISA.

An Innovative Finance ISA invests in peer-to-peer lending platforms allowing you to lend money to individuals or businesses. Our Stocks & Shares ISA invests in risk-controlled stakeholder funds which include a spread of stocks and shares, so your returns can vary. Both Innovative Finance ISAs and Stocks and Shares ISAs benefit from favourable tax treatment.

A Cash ISA is similar to a regular bank or building society savings account, but with special tax advantages – your savings grow free from Income and Capital Gains Taxes. Our Stocks & Shares ISA invests in risk-controlled stakeholder funds which include a spread of stocks and shares, so your returns can vary. Both Cash and Stocks and Shares ISAs benefit from favourable tax treatment.

The only charge on our Stakeholder ISA is an annual management charge of 1.5% of the fund value per year. This reduces to 1% per annum 10 years after the first contribution. The Foresters Stakeholder (Schroders) Managed Funds meet Government-set stakeholder standards. This means more of your money is invested for your benefit.

Already making the most of your ISA allowance?

If you are not eligible for the Forester Life ISA, or you want to invest more than the maximum ISA limit, our Savings & Investment Plan offers a straightforward, low-cost way for you to build up monthly and/or single contributions.

Why Foresters

The information on our website is provided for information purposes only. It is not financial, investment, tax, legal or any other type of advice. Any decision you make to apply for a Forester Life ISA is entirely your own.

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Foresters Financial and Foresters are trade names and trademarks of The Independent Order of Foresters (a fraternal benefit society) and its subsidiaries. Forester Life Limited is registered in England number 2997655. Forester Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.